If Someone Owns a Business Making More Than $250,000 a Year,

[tekisui]

Is that business still considered a "small business"? I have heard that 95% of "small businesses" make less than that, so wouldn't a business making more than that be at least a "medium business", or a "bigger business"?

[Midlodemocrat]

1. I think it depends on the number of employees.

[RC]

2. Is this $250,000 a year personal income or business gross, profits or what?

It seems to me there are Horse Apples mixed in with the Oranges and Pears.

[Puzzler]

4. I'm almost certain it's personal income from the business...

... and not business gross.

[RC]

9. In that case, what does "Business" have to do with anything?

[Jeff In Milwaukee]

3. And remember that under the Obama plan...

If you're creating jobs, you're getting tax breaks for it.

So there are going to be offsets.

Most small businesses are sole proprietorships -- owner/operator with no employees -- and these will almost all get a tax cut.

[Poseidan]

5. size is relative

So really, it depends on the intent of the speaker.

[Warren Stupidity]

6. Generally it is the number of employees not gross income.

"A small business is a business that is independently owned and operated, with a small number of employees and relatively low volume of sales. The legal definition of "small" often varies by country and industry, but is generally under 100 employees in the United States and under 50 employees in the European Union. In comparison, the definition of mid-sized business by the number of employees is generally under 500 in the U.S. and 250 for the European Union. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships. In Australia, small business is defined as 1-19 employees and medium businesses have 20-200 employees."

http://en.wikipedia.org/wiki/Small_business

[tekisui]

11. OK, that helps.

So, that is how a business can be considered small, even if it makes more than $250,000 a year. It could have 20 or 30 employees and make over that. But, only 5% of those businesses with less than 100 employees reach that.

I know I am over-simplifying, but that is a helpful point of reference.

[Warren Stupidity]

13. The vast majority are micro-businesses.

One or two 'employees' who are generally the owners as well, with pre-tax profits of (far) less than 250000. Most are LLC corporations or simple partnerships so the profits are taxed simply as income. This whole non-issue is an endless fabrication from the habitual liars over on the Republican side. The ongoing fantasy narrative they provide for a voting population they depend on to be stupid enough to buy into every election cycle.

[Vinca]

7. If a small business owner is paying taxes on $250,000 as net income,

it's highly unlikely he's operating a "small" business unless his small business doesn't include employees or any significant expenses.

[Warren Stupidity]

14. See above. You'd be surprised at the definition of small business.

100 employees is a small business. However the vast majority of small businesses are one or two person operations that net far less than 250K.

[zbdent]

8. I'm selling pencils, $50,000 each ...

I haven't sold any, but all I need is that one customer ...

[SoonerPride]

10. I suggest you become a contractor for the US Army

[zbdent]

12. please ...

I HAVE standards ...